Press Release

WINCHESTER, VA--(BUSINESS WIRE)--November 2, 2000--Trex Company, Inc. (NYSE: TWP), manufacturer of Trex(R) Easy Care Decking(R), today announced net income of $5.2 million, or $0.37 per diluted share, for the third quarter ended September 30, 2000 compared to net income of $4.1 million, or $0.29 per diluted share, for the third quarter of 1999.

Revenues for the quarter increased to $25.1 million compared to $20.0 million for the third quarter of 1999. Income from operations increased 26.0% to $8.5 million for the third quarter from $6.7 million for the third quarter of last year.

Net income was $18.3 million, or $1.29 per diluted share, for the nine months ended September 30, 2000 compared to supplemental pro forma net income of $11.9 million, or $0.84 per diluted share, for the nine months ended September 30, 1999. Revenues for the nine months increased 58.9% to $98.7 million from $62.1 million in 1999. Income from operations for the nine months increased 53.3% to $30.2 million from $19.7 million in 1999.

Commenting on Trex Company's progress during the quarter, President Robert Matheny stated that "we are pleased with the steady progress of the company as we continue to execute our long-term growth strategy. This strategy balances the demands of business expansion with the need to continue to improve profitability. This quarter's results once again demonstrate progress on both fronts."

During the quarter, Trex Company moved ahead with its expansion plans by bringing up a fifth new production line in its plant in Fernley, Nevada. Thus far this year, capacity has been increased by approximately 40%. As a result, during the quarter the company has accomplished a major long-term goal of eliminating the need to allocate products to its vital network of wholesale distributors and retail dealers.

Mr. Matheny continued, "The elimination of product allocation is clearly a major milestone in our expansion efforts that will have a number of positive impacts, including better customer service and a stronger competitive position. It does, however, create short-term challenges as we manage through a transition period that began in September. Dealers who had previously been stockpiling inventories of Trex(R) material during allocation now realize that this will no longer be necessary. As a result, we are experiencing a temporary slowdown in new orders as excess inventories at the wholesale and retail levels are brought down. Because of the highly seasonal nature of our business, we anticipate that the impact of this temporary slowdown will continue until the normal seasonal demand increases in the first quarter of 2001. At this point, we are estimating fourth quarter 2000 revenues to be similar to or slightly higher than 1999's fourth quarter revenue of $12.3 million. For fiscal 2001, we anticipate annual revenue growth of approximately 25%, as we continue to build out capacity and expand our marketing program."

As additional capacity comes on line, Trex Company is more aggressively expanding distribution channels. During the quarter, Trex Company added eight wholesale distribution locations, bringing the total to 73 distributors, while increasing the dealer base to 2,546. Increased capacity is also enabling the company to begin to market its products to new home builders, and to introduce new products. For example, the new Madeira-colored decking, which has been very successful in the Western U.S., will be made available nationally late this year. Also, in early 2001, the company will begin selling its code-approved railing posts and new landscaping items.

Trex Company's success continues to receive widespread recognition. The company was recently ranked number one in the Forbes annual list of the 200 Best Small Companies in America. It was also named as the number one brand in building materials by Home Magazine.

Trex Company is the nation's largest manufacturer of non-wood decking, which is marketed under the brand name Trex(R). Trex Wood-Polymer(TM) lumber offers an attractive appearance and the workability of wood without the ongoing need for protective sealants or repairs. Trex decking is manufactured in a proprietary process that combines waste wood fibers and reclaimed polyethylene and is used primarily for residential and commercial decking. The Company sells its products through 73 wholesale distribution locations, which in turn sell Trex decking to more than 2,500 independent contractor-oriented retailer lumberyards across the United States. Trex(R)Easy Care Decking(R)and Wood-Polymer(TM)Lumber(TM)are trademarks of Trex Company, Inc., Winchester, VA.

The statements in this press release regarding the Company's

expected sales performance and operating results, its anticipated

financial condition and its business strategy constitute

"forward-looking statements" within the meaning of Section 27A of the

Securities Act of 1933 and Section 21E of the Securities Exchange Act

of 1934. These statements are subject to risks and uncertainties that

could cause the Company's actual operating results to differ

materially. Such risks and uncertainties include the extent of market

acceptance of the Company's products, the Company's ability to

increase its manufacturing capacity, the sensitivity of the Company's

business to general economic conditions and the highly competitive

markets in which the Company operates. The Company's report on Form

10-K filed with the Securities and Exchange Commission on March 22,

2000 discusses some of the important factors that could cause the

Company's actual results to differ materially from those expressed or

implied in these forward-looking statements. The Company undertakes no

obligation to update or revise publicly any forward-looking

statements, whether as a result of new information, future events or

otherwise.

                          TREX COMPANY, INC.

            Condensed Consolidated Statements of Operations
            (In thousands, except share and per share data)
                              (Unaudited)

                         Three Months Ended      Nine Months Ended 
                            September 30,           September 30,
                         -------------------     ------------------
                         2000           1999     2000          1999
                         ----           ----     ----          ----

Net sales              $ 25,078      $ 19,955  $ 98,698     $ 62,095

Cost of sales            11,975         9,358    49,420       27,554
                          -----        ------   -------       ------

Gross profit             13,103        10,597    49,278       34,541

Selling, general and 
 administrative expenses  4,647         3,885    19,097       14,855
                          -----        ------    ------       ------- 
Income from operations    8,456         6,712    30,181       19,686

Interest expense, net       (76)         (181)     (616)      (1,268)
                          ------        -----      -----      -------

Income before taxes and 
 extraordinary item       8,380         6,531    29,565       18,418

Income taxes              3,184         2,394    11,231        6,674
                          -----         -----   -------        -----

Income before
 extraordinary item       5,196         4,137    18,334       11,744

Extraordinary loss on the early 
 extinguishment of debt, 
  net of taxes              --             --        --       (1,056)

Net income            $  5,196       $  4,137  $ 18,334     $ 10,688
                      ========       ========  ========     ========

Diluted earnings per common share
  Income before 
   extraordinary item $   0.37       $   0.29  $   1.29     $   0.94

     Extraordinary item     --             --        --        (0.09)
                      --------       --------  --------     ----------

     Net income       $   0.37       $   0.29  $   1.29     $   0.85
                      ========       ========  ========     ========

Weighted average diluted shares
outstanding         14,193,579     14,181,725 14,182,491  12,457,290
                    ==========     ========== ==========  ==========

  The following table sets forth the computation of diluted earnings
         per common share on a supplemental pro forma basis:

                                                  Nine Months Ended
                                                  September 30, 1999
Numerator:
  Historical income from operations                 $    19,686
  Supplemental pro forma interest expense, net             (483)
  Supplemental pro forma income tax provision            (7,297)
  Supplemental pro forma net income available to 
   common shareholders                                 $ 11,906
                                                       ========
Denominator:
  Denominator for supplemental pro forma diluted 
   earnings per common share-                                
    weighted average diluted shares outstanding      14,153,572
  Supplemental pro forma diluted earnings 
   per common share                                      $ 0.84
                                                         ======

* The supplemental pro forma information presents the Company's
operating results as if the Company's initial public offering and the
conversion of TREX Company, LLC from a partnership for federal income
tax purposes to a corporation taxed in accordance with Subchapter C of
the Internal Revenue Code (a "C corporation") occurred on January 1,
1999. The supplemental pro forma income taxes reflect federal and
state income taxes at an assumed 38% combined effective tax rate. The
supplemental pro forma information excludes (i) interest expense
relating to debt repaid from the net proceeds of the offering, (ii) a
$1.1 million extraordinary charge in the year ended December 31, 1999
for the early extinguishment of debt repaid from the net proceeds of
the offering and (iii) a net deferred tax liability of $2.6 million in
the year ended December 31, 1999, recorded by the Company from TREX
Company, LLC's conversion to C corporation status on April 7, 1999.


                          TREX COMPANY, INC.

                      Consolidated Balance Sheets
                   (In thousands, except share data)

                                  December 31,           September 30, 
                                      1999                    2000
                                --------------          --------------
                                                          (unaudited)
ASSETS
Current assets:
  Cash and cash equivalents    $        --              $       --
  Trade accounts receivable          1,266                   5,696
  Inventories                        8,668                  12,519
  Prepaid expenses and 
   other assets                      1,057                   1,355

  Deferred income taxes                360                     360
                               -----------              ----------
    Total current assets            11,351                  19,930
                               -----------              ----------
Property, plant, 
 and equipment, net                 59,489                  95,688
Intangible assets, net               8,252                   7,720
Other                                  211                     574
                               -----------              ----------
    Total assets               $    79,303              $  123,912
                               ===========              ==========

LIABILITIES AND 
 STOCKHOLDERS' EQUITY
Current liabilities:
  Trade accounts payable       $     6,416              $   10,859
  Accrued expenses                   1,737                   2,678
  Income taxes payable                 117                   2,421
  Other current liabilities          1,163                     727
  Current portion of 
   long-term debt                      385                     602
                               -----------              ----------
    Total current liabilities        9,818                  17,287

Deferred income taxes                3,532                   4,997
Line of credit                       5,714                  17,460
Long-term debt                      10,838                  16,232
                               -----------              ----------
    Total liabilities               29,902                  55,976
                               -----------              ----------
Stockholders' equity:
  Preferred stock, $0.01 par value,
   3,000,000 shares authorized; 
   none issued and outstanding          --                      --
  Common stock, $0.01 par value, 
   40,000,000 shares authorized; 
   14,120,572 and 14,133,126 
   shares issued and outstanding       141                     141
  Additional capital                40,992                  41,193
  Retained earnings                  8,268                  26,602
                               -----------              ----------
    Total stockholders' equity      49,401                  67,936
                               -----------              ----------
    Total liabilities and
     stockholders' equity      $    79,303              $  123,912
                               ===========              ==========

--30--emb/ny*